A multinational Corporation based in the United States of America has subsidiaries in the UK, Canada, and France. As at December 31, 2020, inter-company indebtedness were as follows: Debtors        Creditors         Amount           Currency UK                 Canada           1,500,000            Can$ UK                   France           600,000              Euro (€) France             Canada           800,000             Can$ Canada              UK                 94,000            Sterling (£) Canada             France            400,000             Euro (€) It is the policy company’s policy to net off inter-company balances to the greatest extent possible. The central treasury department is to use the following exchange rates for these purposes: US$1 =Can$1.237/€0.8620/£0.729 Required: Calculate the net payment to be made between the subsidiaries after netting off inter-company balances, by presenting the payoff in a matrix/table format.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A multinational Corporation based in the United States of America has subsidiaries in the UK, Canada, and France. As at December 31, 2020, inter-company indebtedness were as follows:
Debtors        Creditors         Amount           Currency
UK                 Canada           1,500,000            Can$
UK                   France           600,000              Euro (€)
France             Canada           800,000             Can$
Canada              UK                 94,000            Sterling (£)
Canada             France            400,000             Euro (€)
It is the policy company’s policy to net off inter-company balances to the greatest extent possible. The central treasury department is to use the following exchange rates for these purposes:
US$1 =Can$1.237/€0.8620/£0.729
Required:
Calculate the net payment to be made between the subsidiaries after netting off inter-company balances,
by presenting the payoff in a matrix/table format. 

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